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Apply for retro stop-loss payments now

Soldiers, retirees and veterans who think they may be eligible for retroactive stop-loss pay have 12 months to apply for the special $500 per month entitlement authorized by Congress earlier this year.

As many as 140,000 current and former soldiers may qualify for payment.

Effective Oct. 21, the Army will compensate soldiers for each month, or portion of a month, they were retained on active duty beyond their contracted separation or voluntary retirement date.

Claims may be submitted starting Oct. 21 and must be filed by Oct. 21, 2010.

Payments are retroactive to Sept. 11, 2001, and cover involuntary service performed through Sept. 30, 2009.

However, soldiers who have received regular stop-loss pay for service performed after Oct. 1, 2008, will be compensated only if they were in stop-loss status before that date.

The retroactive compensation will be paid lump sum for the months served in stop-loss status.

Soldiers will not receive regular stop-loss pay and retroactive stop-loss pay for the same period.

The Defense Finance and Accounting Service will determine the applicable tax exclusion for retroactive pay that was earned in a combat zone, according to Army officials.

While all the armed forces have imposed some form of stop-loss since 9/11, the Army has liberally applied the policy to its active and reserve components over the past nine years, with restrictions initially imposed on soldiers in priority specialties, and since 2003, on entire units.

Because of stop-loss’s widespread use, Army personnel officials estimate that nearly 140,000 current and former soldiers may be eligible.

To qualify, soldiers, retirees, veterans or their survivors must file a claim with the Army no later than Oct. 21, 2010.

Claims can be submitted electronically beginning Oct. 21 at a dedicated Web site, https://www.stoplosspay.army.mil.

Soldiers and former soldiers qualify for retroactive stop-loss pay if they were retained on active duty beyond:

• A contractual expiration term of service, or ETS, date, or in the case of reservists, their contractual ETS in the Selected Reserve.

• An approved separation date based on an unqualified resignation or release from active duty or, in the case of reservists, an approved request for transfer to the Individual Ready Reserve.

• An approved retirement based on length of service.